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Mortgage Guarantee

In April 2021, the government gave aspiring homeowners a leg up with their Mortgage Guarantee Scheme.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up with the mortgage repayments.

This meant first-time buyers and existing homeowners could own their dream home and only put down a minimum deposit of 5%.

This was introduced because during the covid 19 pandemic, home ownership soared but the lender attitude to risk meant that low Loan to Value deals were no longer available therefore, the government wanted to have a scheme in place to help potential buyers with a lower deposit, join the property ladder.

With the scheme being government-backed, this gave High Street Banks a security blanket, meaning low Loan to Value products were being brought back again, making mortgages within reach to most buyers.  The government offered the banks and building societies the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks.

Bad Credit - Resolute Mortgages - Claydon, Ipswich

Unlike Help to Buy and Shared Ownership schemes, the Mortgage Guarantee Scheme means you will have full ownership of the property from day one! However, the scheme was due to end in December 2022, but this has been postponed coming to a finish on 31st December 2023.

More details about this scheme can be explained by one of our advisors who will be more than happy to advise if this is a suitable option for you.

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